Create a vendor prepayment

Create a vendor prepayment to record a payment made before the corresponding vendor bill. Open Menu and select Payables > Vendor prepayments.

Before you begin

You need an active vendor with the applicable payment and prepayment accounts. See Create a vendor.

Create the prepayment

  1. Open Menu and select Payables > Vendor prepayments.

  2. Select Create vendor prepayment.

  3. Select the Vendor and enter the vendor prepayment date.

  4. Select the Payment account and enter the Payment amount.

  5. To associate the prepayment with a purchase order, select the Linked purchase order.

  6. Enter a memo when needed.

  7. In Accounting, review the Posting period and select the Prepayment account.

  8. Save the prepayment as a draft or submit it.

A draft or pending-approval prepayment does not post. The prepayment posts immediately after submission when approval is not required, or after it is approved when approval is required. Its amount is then available to apply to a vendor bill for the same vendor. When a purchase order is linked, it also controls which bill can receive the prepayment.

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